In a market economy, nearly all economy-related decisions are determined by the interplay of ________.

Question

Quizplus · Accepted Answer

In a market economy, prices and the allocation of resources are determined by the interaction of supply (producers) and demand (consumers). While government may play a role in providing regulations and infrastructure, ultimately it is the market forces of supply and demand that direct the economy. Therefore, option B, supply and demand, is the best choice.

In a Market Economy, Nearly All Economy-Related Decisions Are Determined